State not easing rules on energy efficiency

Thursday

Nov 29, 2012 at 12:01 AMNov 29, 2012 at 10:33 AM

An attempt to rewrite the state's energy-efficiency standards is likely dead until at least next year. FirstEnergy, the leading supporter of the measure, said yesterday that it no longer expects the legislature to take action in the next few weeks.

Dan Gearino, The Columbus Dispatch

An attempt to rewrite the state’s energy-efficiency standards is likely dead until at least next year.

FirstEnergy, the leading supporter of the measure, said yesterday that it no longer expects the legislature to take action in the next few weeks.

The Akron-based electricity provider hopes lawmakers will revisit the topic next year. FirstEnergy and other large electricity utilities have said the costs of escalating energy-efficiency standards will be a drag on the economy.

“We remain concerned that Ohio’s energy-efficiency mandates will continue to impose significant costs on electric customers — costs that we all pay, directly and indirectly,” spokesman Doug Colafella said in a statement.

The proposal, which would have been added to an unrelated measure, would have frozen the energy-efficiency standard at its current level. The law, passed in 2008, says power companies must take action to reduce customers’ electricity usage, with goals that rise each year until 2025. This has led to programs that encourage customers to replace old refrigerators and get energy audits, among other things.

Some business and environmental groups oppose any attempt to change the standard. They contend that energy efficiency is a boon to the economy because it leads to lower electricity demand and lower bills.

“I’m delighted to hear that there will be nothing under the Statehouse Christmas tree for FirstEnergy this year,” said Jack Shaner, deputy director of the Ohio Environmental Council.

Legislative aides confirmed that the proposal will not come up for a vote in the session that will take place over the next few weeks. They expect the issue to come up early next year, when there will be more time to review it.

Because of the energy-efficiency standard, utilities have taken actions that saved enough power to meet the annual needs of hundreds of thousands of households. The programs are funded by customers, with $2 to $3 per month charged on a typical residential American Electric Power bill.

Business groups are divided on whether to change the rules. On one hand, the standards create demand for products and services sold by Ohio businesses, and they provide money for retrofittings that reduce power bills. On the other hand, large businesses pay thousands of dollars per month for the programs, and they have concerns that the costs will dramatically increase as the standards become more difficult to meet.

Rob Nichols, spokesman for Gov. John Kasich, had no comment about the fate of the current proposal, but he did speak about the larger issue of energy-efficiency rules.

“We are always looking for ways to create a jobs-friendly environment here in Ohio,” Nichols said. “The cost of energy is a big piece of that. Helping energy companies control their energy costs is important, and we should always keep in mind that the cheapest and cleanest energy is the energy we don’t need to use.”